Inco profits jump 128.6%

Inco profits jump 128.6%

JAKARTA (JP): Publicly-listed nickel mining company PT International Nickel Indonesia (Inco) reported a 128.6 percent increase in its (unaudited) net profits to US$96 million last year.

The company said in a statement that its sales rose 38.9 percent to $301.8 million last year.

In the fourth quarter alone of last year, the company booked a net profit of $25.4 million, as compared to $17.3 million in the same period of the previous year.

"The significant increase in net earnings for the year 1995 was primarily due to substantially higher nickel price realizations, partially offset by an increase in unit production costs" the company's statement said.

The company's realized prices for nickel in matte increased to an average of $2.95 per pound last year from $2.18 per pound in 1994.

The selling price of the firm's nickel in matte is determined by a formula based on the London Metal Exchange (LME) cash price for nickel.

Inco's president, Rumengan Musu, told The Jakarta Post yesterday that based on analysts' reports, the price will likely stay high this year due to a shortage of nickel on the world market.

The company said that the rise in production costs in 1995 was primarily caused by higher fuel prices.

The company's production of nickel in matte reached a record of 100.2 million pounds in1995, as compared to 99.9 million pounds in 1994.

Rumengan said that the company plans to produce about 100 million pounds this year.

This year's production will not surpass last year's level because in the fourth quarter this year Inco will renovate one of its three melting fireplaces, he said.

However, Rumengan added that Inco will raise its production capacity by 50 percent to 150 million pounds per annum by 1999, with an additional investment of $580 million. (08)